Dividends per share is equal to dividends paid:

Question

Quizplus · Accepted Answer

Dividends per share is the amount of dividends paid to each shareholder for each share owned. To calculate dividends per share, we divide the total dividends paid by the total number of shares outstanding, hence option C is the correct choice. Multiplied by the total number of shares outstanding (option A) would give the total dividends paid, not dividends per share. Total shareholders' equity (option B) is not directly relevant to dividends per share. Multiplied by the par value of the common stock (option D) and divided by the par value of common stock (option E) are not correct methods to calculate dividends per share.

Dividends Per Share Is Equal to Dividends Paid